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LNG has a huge potential to be used as a transport fuel which could lead to a shift in the natural gas industry.
Friday saw the last day of the International Conference & Exhibition on Liquefied Natural Gas in Houston. A giant event that saw industry and government officials from around the world gather to discuss the potential of LNG in the future. Special interest was made to the production and delivery of LNG around the world, as well as the use of LNG as a fuel for long-haul trucking and marine transportation.
Anders Ekvall, the vice president of LNG Americas, stated, “it’s not often you get to participate in a paradigm shift in an industry, and I think we are doing that now.” Ekvall believes that despite the challenges facing the LNG industry, by 2020 one fifth of the world gasoline demand could be met by LNG.
Related article: Australia Set to Become World’s Biggest LNG Exporter by 2018
As well as the huge abundance of cheap natural gas, created by the US shale boom, LNG offers an enticing option as a transport fuel due to the fact that it burns much cleaner than gasoline, releasing fewer greenhouse gases.
Trusting that the LNG market will grow in the future, Shell has invested in a massive floating LNG facility off the coast of Australia that will enable access to offshore gas fields that without the floating processing plant would be too costly to develop.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com